June 8, 2021

How does OKR Methodology help with Setting SMART Goals?

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How does OKR Methodology help with Setting SMART Goals?

For successful goal-setting, organizations must define smart goals that provide a clear vision to employees and unify everyone in the same direction to attain success. Organizations adopt Objectives and Key Results (OKRs) to set bold and ambitious goals that drive employees to engage, upskill, and prioritize their work. This is not merely aligning goals throughout the organization but optimizing shared objectives to build a performance-centric workforce. OKR methodology helps integrate SMART (Specific, Measurable, Ambitious, Relevant, and Time-bound) goals into everything employees do to attain tangible outcomes- improved focus, qualitative feedback, and higher productivity. Besides setting SMART goals, OKRs also aid businesses in answering few questions such as why goal-setting is important for the company or how an employee monitors progress at the end of a quarter or year.

Why is Employee Goal-setting Important for your Business?

Before implementing OKRs, businesses must consider how to set effective goals:

  • Participation

    Employees who participate in the goal-setting process establish higher goals and get more aligned towards the company’s vision and purpose. They collaborate with their teams and managers to set or update OKRs, resulting in improved motivation, higher performance, and better clarity around expectations to achieve enhanced results.

  • Documentation

    Organizations consider it a good idea for employees to write individual and company’s OKRs in detail. This enables managers to assess individual progress during periodic check-ins and realign/update OKRs, if required, to yield performance-driven results. Besides, effective team interactions on goal-setting and achievements help improve knowledge transfer, drive engagement, and boost impact.

  • Visibility

    Once goals are set and written, it is crucial to ensure that everyone can view other people’s goals, thus imbibing a sense of transparency and greater sense of motivation and satisfaction while contributing towards the company’s success. Ultimately, transparency of purpose boosts individual commitment towards a goal and aligns others towards common objectives accordingly.

Also Read: Improving Business Resilience and Outcomes using OKRs

The powerful OKR methodology helps business leaders to not only set goals but also evaluate progress and give recognition at continuous intervals. For this, business outcomes must be-

  • Assessed Timely

    The frequency at which OKRs are monitored depends upon the nature of goals as well as the company’s culture. Mostly, goals are reviewed monthly or quarterly as it becomes easier to realign or refresh objectives as per the changing business priorities.

  • Feedback sessions are imperative for driving employee engagement and motivation by focusing on few questions such as-

    • What are the roadblocks during the entire OKR journey?
    • How are employees progressing within a month or quarter?
    • How well are individual goals aligned to company-level OKRs?
    • Is the OKR methodology effective enough to bridge the gap between strategy and execution?
  • Recognized

    While adopting OKRs, business leaders must also recognize individual effort and persistence to boost employee morale. Employee recognition at regular intervals helps improve teams’ confidence and encourages them to perform better and stay productive.

Also Read: OKR Methodology for Remote Workforce: How is it Important?

Objectives must not be considered as a to-do list but should define inspiring goals that an organization wants to achieve. Key Results linked to each objective should be measurable and time-bound, focusing more on outcomes than outputs. For successful employee goal-setting and performance tracking with OKR methodology, try Unlock:OKR to measure business success. To see how OKRs can help set smarter goals for your business, you can Book a Demo with us.